The Bitcoin market has been growing exponentially since its inception in 2008 and is expected to grow even faster in the coming years. Trading and investing in this cryptocurrency are two different things, so it’s important for anyone who wants to trade Bitcoin successfully to understand how these processes work. This article will cover some of the basics of Bitcoin trading as well as provide tips on where and how to trade it in 2021.
Find a good platform and learn how to trade on it
A good platform is the most essential part of Bitcoin trading. Without a good platform, traders will lose money and waste their time on unprofitable trades which is not what they want to do in 2021. There are multiple exchange platforms that can be used according to business24-7.ae and it all depends on the stages you are in when it comes to Bitcoin trade. Once you choose one make sure to take advantage of all the features given by it so that it doesn’t go to waste.
There are platforms for people who are new to Bitcoin trading and Bitcoin in general. These are all about Bitcoin education, Bitcoin news, and Bitcoin trade recommendations for people who want to get started with Bitcoin but don’t know where to start or what they should do next. There are also exchanges that can be used by experienced traders who love using technical analysis while making trades. These platforms provide the best strategies when it comes down to Bitcoin trading so make sure you pick one according to your level of experience if needed.
Follow the bitcoin news
Following the news is a key aspect of Bitcoin trading that is not to be ignored. Bitcoin news can inform you about the price changes of Bitcoin, as well as the most important factors when considering how and where to trade Bitcoin at a given time.
The news can also give you predictions about Bitcoin, which can be valuable in trading. Another thing that Bitcoin news is useful for is giving you ideas about how to use this cryptocurrency and what the future holds for it. For example, there are some who believe that it will become a world reserve currency within our life which would have huge implications when considering where and how to trade Bitcoin!
As well as reading blog posts written by others on specific topics relating to Bitcoin, it’s also worth following the news channels of official sources such as Coindesk or Cointelegraph so you can stay up-to-date with everything happening around Bitcoin at all times. These websites contain daily updates from across the web so you can easily keep with new developments affecting your Bitcoin.
Look for potential arbitrage opportunities
Arbitrage opportunities are a trader’s “bread and butter” as they provide the possibility to make profits with little effort. Bitcoin is not an exception! See where you can find Bitcoin arbitrage opportunities in order to maximize your gains.
Arbitraging bitcoin options contracts on BitMex
BitMex provides Bitcoin traders with a unique opportunity of making money from small price differences between Bitcoin futures contracts that arise during their life span (which lasts for about one month).
Arbitraging bitcoin futures contracts on BitMex
BitMex is the best place to arbitrage Bitcoin futures contracts because it enables traders to make a profit from small price differences that arise between two Bitcoin futures contracts of the same expiry time, but with different strike prices. Moreover, Bitcoin arbitrage on BitMex is a less risky way traders can use Bitcoin as collateral.
Arbitraging Bitcoin CFDs on Plus500
Plus 500 is another great place where Bitcoin traders can make money from small price differences between Bitcoin futures contracts that arise during their life span (which lasts for about one month).
Using peer exchanges and OTC platforms for Bitcoin arbitrage in 2021: watch out!
Another type of Bitcoin arbitrage opportunity that may present itself in the near future is those arising due to legal restrictions imposed by regulators upon some US peers, such as Kraken and BitFinex. These events could create an opportunity for savvy traders to arbitrage Bitcoin on peer exchanges, such as OKEx.
Bitcoin arbitrages with futures contracts
Finally, Bitcoin traders can make money from Bitcoin arbitraging via Bitcoin futures contracts that are based upon different types of underlying assets (i.e., equity indices, commodities, or currencies). See how you could benefit from this type of Bitcoin trading!
Keep an eye out for market trends
Bitcoin market trends are a great tool for Bitcoin traders. They provide vital information that can help you predict Bitcoin price movements in 2021 and potentially increase your trading profits.
However, there are many different Bitcoin market trends to follow. Which ones should you focus on? And how do you even decide which one is right for your strategy? This article will tell you everything about Bitcoin market trends so 2020s year’s trades go well!
Here’s a list of trends you should follow in 2021:
- Bitcoin price trend
- Bitcoin trading volume trends
- Bitcoin volatility trends
- Bitcoin market cap trends
- Bitcoin news trends
Consider trading with leverage
Leverage is an excellent way of increasing Bitcoin trading profits. It enables traders to trade Bitcoin more confidently, but it also carries risks for those who don’t use leverage carefully. Using Bitcoin with leverage can be very profitable in the long term if you approach Bitcoin margin trading strategically and responsibly.
You should always assess your own financial situation before deciding how much Bitcoin to buy or sell at any given time while taking into consideration how volatile the market is when using Bitcoin with a high level of exposure to price fluctuations.
Don’t invest more than you can afford to lose
When investing in Bitcoin, always keep in mind that it’s a very volatile market. It’s not unlikely that its value could change in the short or long term, and it’s important to be able to weather this changing tide when trading Bitcoin. The last thing one wants is losing everything because they overestimated their investment skills. If you’re going all-in on an untested currency with your life savings then maybe don’t do that Investing should never be taken lightly.
Bitcoin is not a get-rich-quick scheme, but there are some short and long-term investments that people can take advantage of if they know the right tricks. That’s why it’s important to never invest more than you can afford to lose in Bitcoin.
If you do things right, Bitcoin can be very profitable for you. That’s why you have to do your research with different platforms and also follow the news daily. Staying informed will help you follow market trends and take arbitrage opportunities. Also, always consider trading with leverage and never invest more than you can afford to lose. Good luck getting rich!